One of the biggest tech companies in the country, Infosys, was hit with a wave of controversy when, on July 31, reports emerged that the Bengaluru-based IT company was served with pre-show cause notice for tax or GST evasion of over Rs 32,000 crore.
Infosys Shares Withstand Pressure
This led to a ripple effect of reactions from across the board. After the controversy broke out, the company immediately responded to the news through an exchange filing on the matter, claiming that they had paid all the taxes.
Post this, all eyes were on the company shares. Infosys shares listed on the National Stock Exchange or NSE, however, appear to have reacted temperately. There has not been a mass-sell-off or significant decline in the prospects of the company.
Although the shares have been trading in red since the beginning of the day's trade on Thursday, August 1, the share prices have not declined under the 1 per cent mark.
At 13:24 IST, the Narayan Murthy-founded company's shares declined by 0.71 per cent or Rs 13.25, dropping to Rs 1,855 per share.
The company responded to the matter in an exchange filing and issued statement. In the statement, the company said, "The company in a statement said, "Karnataka State GST authorities have issued a pre-show cause notice for payment of GST of Rs. 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Limited. "
The statement further added, "The Company has responded to the pre-show cause notice. Subsequent to the publication of the news articles the Company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the Company is in the process of responding to the same."
The company's former CEO, Mohandas Pai, was one of the biggest names to respond and called this happening an instance of 'Tax Terrorism'.
